Analysts concerned U.S. headed for another recession

Financial woes south of the border may be leading the U.S. into its second recession in three years.

New economic data, including a substantial drop in a regional manufacturing index, slumping housing sales and a sharp rise in unemployment claims have the markets worried the American economy could be on track to a double-dip recession.

The first of several expected regional manufacturing surveys say manufacturing took a big hit in the mid-Atlantic states.

The survey, done by the Federal Reserve Bank of Philadelphia, says manufacturing fell to -30.7 points in August. The index rose 8.2 points in July. As a baseline, anything below zero points to a contraction in manufacturing activity.

Chances are that anyone with a home on the market may have it there longer than they're used to, as well. Sales of existing housing fell 3.5 per cent from the previous month.

The number of unsold homes on the U.S. real estate market are equivalent to 9.4 months worth of supply, despite the fact 30-year mortgage rates fell to a new record low of 4.15 per cent.